DecorRetail buys and sells seasonal decoration items. Isabel, CEO, has collected the following information about her operations as of December 31: 1. Sales history and Forecast: December January February Sales $ 140,000 180,000 200,000 DM purchase 38,000 41,500 31,050 Direct labor 46,000 54,000 58,000 MOH 20,000 26,000 32,000 S&A expenses 16,000 28,000 30,000 2. December ending cash balance: $30,000 3. All sales are on account. Nicole, a junior accountant, expect to collect 70% in the month of the sale, 30% of the month's sales are usually paid the following month. Nicole also expresses her professional judgement to estimate that 5% of the sales due in the month following the sales will never be collected. 4. Also, since Nicole is a new tax specialist after passing her quiz in Acco 340, she said that we should only pay 60% of the direct material purchases in the month of the purchase and the balance in the following month. She also mentions that we always need to have at least $25,000 in the bank account. 5. Monthly depreciation expense included in MOH expense: $4,000 6. Heidi, a recently hired manager bought equipment on the first day of February at a price of $24,000